Mumbai: Indian engineering and construction company Larsen & Toubro’s shipbuilding arm will sign a technological and licensing agreement with Japan’s Mitsubishi Heavy Industries Ltd (MHI) as both firms look for shipbuilding opportunities in emerging economies.
Under the agreement, Mitsubishi will initially train engineers from L&T Shipbuilding Ltd (LTSB) in building vessels and assist in procuring materials from overseas. It will also advise on potential expansion of L&T’s shipbuilding facilities.
Mitsubishi and L&T Shipbuilding will eventually jointly market and sell commercial vessels, L&T said in a statement.
The companies will sign a three-year agreement starting early 2012, with an option to extend it.
L&T and Mitsubishi currently operate two joint ventures to manufacture power-related equipment, including super-critical boilers, and steam turbines and generators, which they signed in 2007.
At 11:00 am, L&T shares were trading 1.4% higher at Rs1,040.15 in a flat Mumbai market.